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Contract Closeout

This SOP has internal roles only.

Lock icon: This link will not work for public visitors.Some links will work for NIAID staff only.

Standard Operating Procedure Table of Contents

Purpose

To administratively close a contract after it is completed, including certifying that all services and deliverables are satisfactory and all costs have been settled.

Procedure

Contracts are physically complete when contractors have rendered all services and the government has accepted all documents, materials, data, and other deliverables. Contracts are administratively closed when all administrative activities have been accomplished, releases executed, and final payment made.

Contract specialists close files according to the following schedule:

  • For firm-fixed-price contracts, other than those using simplified acquisition procedures: within six months after the date on which the contracting officer receives evidence of physical completion.
  • For contracts requiring settlement of indirect cost rates: within 36 months of the month in which the contracting officer receives evidence of physical completion.
  • For all other contracts: within 20 months of the month in which the contracting officer receives evidence of physical completion.

A contract file shall not be closed if the contract is in litigation or under appeal or if all termination actions have not been completed.

For two years after a final voucher is received, NIAID retains completed contract files in the main contract and grant contract file room of the Division of Extramural Activities.

Then, the contract files are moved to the Washington National Records Center where they are retained for four years and three months. They may be destroyed six years and three months after the final voucher has been received and paid.

Contract Specialists

  • At least three months before contract completion, begin preparing for closeout.
    • Discuss property and data disposition with contracting officer's representative.
    • Inform the closeout administrator if contract will be extended.
    • Evaluate contract performance.
  • Within five days of contract completion, update “Contract Status Code” (Item 27) in the Departmental Contracts Information System (DCIS) by selecting the “Physically Complete” option.
  • Within 90 days after contract completion:
    • Obtain the complete, signed copies of the following forms from the contracting officer's representative:
    • File the Final Technical Progress Report with the forms above. Place both documents on top of the Final Technical Progress Report.
    • Complete a Final Contractor Performance Evaluation using the Contractor Performance Assessment and Reporting System (CPARS).
    • File the Final Technical Progress Report with the signed COR's Evaluation of Progress Report and COR Certification. Place both documents on top of the Final Technical Progress Report.
    • Receive a final Subcontracting Report for Individual Contracts (SF-294) in the Electronic Subcontracting Reporting System.
      • Review the SF-294 and either accept or reject the report.
      • Print and sign a copy of the subcontracting report and include it in the contract file.
    • Complete a Subcontracting Compliance memo.
    • Complete a Contracting Officer's Memo stating the disposition of property and animals, if applicable.
    • Ensure a copy of the completed invoice spreadsheet is located on the "R:" drive.
      • Click on the "R:" drive.
      • Select the "Office of Acquisitions (OA) Invoice Spread Sheets" and then the "Contract Management Branch (CMB) Spreadsheet."
      • Save a copy of your invoice spreadsheet in this folder.
    • Send entire contract file to the closeout administrator.
  • Upon return of the completed contract file from the closeout administrator, do the following:
    • Process the in-house modification drafted by the closeout administrator if funds are de-obligated or refunds are returned to the Office of Acquisitions.
    • Administratively close out the contract in DCIS by updating “Contract Status Code” (Item 27) to “Administratively Closed”. This step is required even if funds are not involved.
  • Provide the contract file to the OA branch chief and contracting officer to review, execute the in-house modification, and sign the required closeout forms.
  • Return the contract file to the closeout administrator.

Contracting Officer's Representatives

Closeout Administrators

  • Send an expiration letter to the contractor (Lock icon: This link will not work for public visitors. Expiration Letter Template).
  • Receive the contract file from the contract specialist.
  • Maintain completed contracts, assuring all forms listed in the Contract Closeout Checklist are complete and included in the contract file.
  • Initiate contract closeout by sending contractors a Contracting Officer’s Contract Completion Statement and Certification.
  • Obtain statements from contractors indicating that each subcontract has been settled.
  • Obtain final property inventories from contractors.
  • Obtain a contract property administration completion report (NIH 488) from the property administrator.
  • Receive final negotiated indirect cost agreements for the contract period of performance.
  • Perform a desk audit using the Desk Audit Template.
    • Save a copy of the Template to your personal computer before populating the Template.
    • See the completed Desk Audit Sample.
  • Process all vouchers using predetermined or final indirect cost rates and cross-check all vouchers against the Data Warehouse spreadsheet.
  • Settle interim and disallowed costs with the contractor. 
  • Obtain a Contractor's Certification—General Provisions if applicable. 
    • Contracting officers will include this certification in the Contracting Officer’s Completion/Expiration Letter.
  • Obtain a Contractor’s Release of Claims and/or Assignment of Refunds, Rebates, Credits, and Other Amounts.
  • Complete the Completion Statement.
  • Complete the Final Certification.
  • If funds are de-obligated or refunded, draft an "in-house" contract modification.
  • After receiving closeout documentation, give the contract file and documentation to the senior closeout administrator. Then forward to the appropriate OA branch chief for review.

OA Branch Chiefs and Contracting Officers

  • Receive completed contract file from closeout administrators.
  • Assign the contract file to a contract specialist to process an in-house modification, if funds are to be de-obligated or refunds are to be returned to OA. 
  • Once remaining funds are de-obligated, proceed to close out the contract in PRISM by following the contract close-out procedures. 
  • After closing out the contract in PRISM, administratively close out the contract in DCIS.
  • Upon receiving contract file back from the contract specialist, review the contract file, execute the in-house modification, and sign the required closeout forms.
  • Within 30 calendar days of initial receipt of the contract file, do the following:
    • Sign and file the closeout forms.
    • Tell the closeout administrator to pick up the contract file.

Note the difference between a completion voucher and a final voucher. A completion voucher is received shortly after a contract is completed; a final voucher is due within one year after contract completion and is for a final payment.

Contacts

Lock icon: This link will not work for public visitors. Staff Only Contact

Lock icon: This link will not work for public visitors. Staff Only Contact

Contract Specialists: Lock icon: This link will not work for public visitors. Staff Only Contact and Lock icon: This link will not work for public visitors. Staff Only Contact

Closeout Administrators: Lock icon: This link will not work for public visitors. Staff Only Contact and Lock icon: This link will not work for public visitors. Staff Only Contact

See the public Office of Acquisitions staff listing for list of contract specialists and branch chiefs.

If you have knowledge to share or want more information on this topic, email deaweb@niaid.nih.gov with the title of this page or its URL and your question or comment. Thanks for helping us clarify and expand our knowledge base.

Links

FAR Subpart 4-804 Closeout of Contract Files

FAR Subpart 35.014, Government Property and Title

FAR 42.708, Quick-Closeout Procedure

FAR Part 45, Government Property

HHSAR 304.804-70 Contract closeout audits

NIH Manual 1742, Transfer, Withdrawal and Destruction of Records at the Washington National Records Center

NIH Manual 1743, Keeping and Destroying Records

NIH Manual 6342-2, Funding of Cost Overruns

NIH Manual 6342-70, Contract Financial Reporting and Review

Contracting Officer SOP

Contract Deliverables and Reporting Requirements SOP

Contracting Officer's Representative (COR) SOP

Last Updated July 11, 2012

Last Reviewed July 11, 2012